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What do the reported results show?
The available full-year figures are not from matching fiscal years: Nvidia’s are for FY2026, while AMD’s are for FY2025. AMD’s Q2 FY2026 results provide a more recent quarterly update, but they are not a same-period comparison with Nvidia’s full year.
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| Measure | Nvidia | AMD | How to read it |
|---|---|---|---|
| Full-year revenue | $215.938 billion in FY2026, up 65% year over year (NVIDIA, 2026). | $34.639 billion in FY2025, up 34% year over year (AMD, 2026). | These are company-reported full-year figures for different fiscal years; they show scale, not an apples-to-apples growth ranking. |
| Full-year Data Center revenue | $193.7 billion in FY2026, up 68% year over year (NVIDIA, 2026). | $16.635 billion in FY2025, up 32% year over year (AMD, 2026). | Both companies have significant exposure to data-center demand, but the periods differ. |
| Other reported segments | Not stated in the cited FY2026 results summary. | Client and Gaming: $14.550 billion; Embedded: $3.454 billion in FY2025 (AMD, 2026). | AMD’s FY2025 revenue mix includes substantial sales outside Data Center. |
| Latest cited quarterly update | Q1 FY2027 revenue outlook: $78.0 billion, plus or minus 2%; management said the outlook assumed no Data Center compute revenue from China (NVIDIA, FY2026 results release, 2026). | Q2 FY2026 revenue was $11.536 billion, up 50% year over year; Data Center revenue was $6.718 billion, up 107% (AMD, 2026). | Nvidia’s figure is a management outlook, not a realized result. AMD’s figures are reported results. The periods and measure types do not match. |
| Gross margin | 71.1% GAAP gross margin in FY2026 (NVIDIA, 2026). | 54% GAAP gross margin and 56% non-GAAP gross margin in Q2 FY2026 (AMD, 2026). | The GAAP figures are from different periods. AMD’s non-GAAP figure is a separate adjusted measure and should not be compared directly with Nvidia’s GAAP margin. |
For AMD, management attributed Q2 FY2026 Data Center growth to strong EPYC processor demand and the continued ramp of Instinct GPUs. That explanation is management commentary; it helps identify the stated drivers but does not independently establish how durable they will be.
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AMD changed its segment presentation in FY2025 by combining Client and Gaming into one reportable segment and retrospectively adjusting prior periods. When examining older AMD comparisons, use the company’s recast figures rather than assuming the segment labels and totals are unchanged.
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How should you compare business mix and growth?
Revenue growth matters most when paired with its source, profitability, and repeatability. A useful comparison asks whether growth comes from a broad set of products and customers or depends heavily on one spending cycle, and whether the company can convert that growth into operating income and cash flow. The figures above show Nvidia’s current business is much more concentrated in Data Center revenue; AMD’s reported mix also includes large Client and Gaming sales and an Embedded business.
- Separate the market from the company: demand for AI computing or servers does not automatically translate into revenue for either supplier. Track actual segment sales, customer deployments, and the company’s ability to deliver products.
- Look for customer and deployment concentration: data-center revenue growth can be vulnerable if a small number of customers delay purchases, financing, or facility buildouts. The cited figures do not establish customer concentration levels, so consult company filings for that detail.
- Check whether growth reaches earnings and cash flow: compare segment operating income where reported, company-wide operating margin, cash from operations, capital spending, and working-capital changes over aligned periods. Revenue alone does not show the cost of generating growth.
- Use consistent periods and accounting: compare fiscal year with fiscal year or quarter with the same quarter a year earlier. Use GAAP as the baseline; if using non-GAAP results, identify the adjustments and compare the same measure for both companies.
What do margins tell you—and what do they not?
Gross margin is the share of revenue remaining after cost of revenue, before operating expenses. It can reflect product mix, pricing, manufacturing costs, and supply conditions, but it does not capture research and development, sales costs, taxes, or the cash needed to support expansion. For an investment comparison, examine operating margin and cash generation alongside gross margin rather than treating a higher gross margin as a complete measure of business quality.
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The reported margin figures in the table are not a clean head-to-head test: Nvidia’s is a FY2026 GAAP result, while AMD’s are Q2 FY2026 figures, including both GAAP and non-GAAP. Non-GAAP measures exclude items defined by the company and may not be comparable across issuers; consult each company’s reconciliation before using them.
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How strong are the competitive positions?
GPU-company competition is not only about chip specifications. For data-center buyers, performance per watt, availability, system integration, software tools, developer support, compatibility, and the time required to deploy a new platform can all affect adoption. For investors, the relevant question is whether those advantages produce sustained customer demand and acceptable returns—not simply whether a product can win a benchmark.
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AMD’s FY2026 Q2 filing identifies Nvidia’s financial resources and proprietary software ecosystem as competitive pressures on AMD. That is AMD’s own risk disclosure, not an independent market-share study. The cited official materials do not establish an industry-wide market-share comparison or an independent forecast of which company will prevail in AI computing. Avoid turning company commentary or fast growth in one segment into an unsupported prediction of a winner.
Which execution and external risks should investors monitor?
Both companies depend on an expanding data-center buildout, but growth can be constrained by more than demand for chips. NVIDIA identifies customer capacity, energy availability, and financing as factors affecting deployment, along with product transitions, adoption timing, and changing export controls. AMD identifies competition, product compatibility and software support, reliance on third-party manufacturing and supply, export controls and tariffs, and uncertainty around infrastructure capacity and AI demand.
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- Buildout and customer funding: watch for delays in data-center construction, power availability, or customer access to capital, which can push out orders or installations.
- Product transitions and adoption: a delayed launch, slower customer qualification, or difficult transition to a new product generation can affect the pace at which expected demand becomes reported revenue.
- Manufacturing and supply: AMD specifically identifies third-party manufacturing and supply-chain dependence as risks. More broadly, a supplier’s ability to meet demand matters only if production, packaging, and delivery keep pace.
- Export rules: controls can change by product and destination, affecting what can be sold and under what license. NVIDIA’s FY2026 Q3 filing reported a $4.5 billion charge in Q1 FY2026 related to H20 inventory and purchase obligations after U.S. export-license requirements affected China demand. That is a disclosed historical charge, not a measure of current exposure.
How should you treat management outlooks?
Keep forecasts separate from results. Nvidia’s FY2026 release gave a Q1 FY2027 revenue outlook of $78.0 billion, plus or minus 2%, with the stated assumption of no Data Center compute revenue from China. It is management’s forward-looking estimate, not a realized quarterly figure. Compare it with the eventual reported result and the assumptions disclosed at the time; do not put it beside AMD’s reported Q2 FY2026 revenue as if both were actuals for the same period.
NVIDIA founder and CEO Jensen Huang described the environment this way in the company’s February 25, 2026 FY2026 results release: “Computing demand is growing exponentially — the agentic AI inflection point has arrived.” Treat this as management’s characterization of demand, not as independently verified evidence or a forecast.
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How do you compare valuation without confusing it with business quality?
A company can be growing quickly and still be an unattractive investment at a particular price; a slower-growing business can also be overvalued. To assess valuation, first select a common market-data date and a method, then use synchronized share prices and share counts to calculate market capitalization. Enterprise value adds debt and subtracts cash, so it can help compare businesses with different capital structures.
- Set the date and the basis. Record share price, diluted share count, debt, and cash for the same date or clearly aligned reporting date. State whether you are comparing market capitalization or enterprise value.
- Choose comparable financial measures. Calculate ratios such as price-to-earnings or enterprise-value-to-operating-income using the same trailing or forward basis for both companies. Do not mix one company’s trailing results with the other’s forecast.
- Make forecast assumptions visible. If using forward earnings or cash flow, identify the estimate date and source, and consider how the result changes if growth, margins, or capital spending differ from expectations.
- Connect the multiple to risks. A valuation multiple is not a stand-alone verdict. Consider how much future growth it assumes and how exposed that growth is to customer buildouts, competition, supply, product transitions, and export rules.
The reported operating figures here do not establish which stock is cheaper or offers the better expected return. That requires synchronized market prices, share counts, comparable estimates, and a stated valuation method; without those inputs, a buy-or-sell ranking would overstate what the operating results can show.
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